China Prepares Laws For Helping Its Digital Yuan To Eliminate Competitors

Soon after the launch of the Chinese digital Yuan, there has been too much going around in China.

China, which has recently launched the digital Yuan, has been busy closing down gambling websites. But that’s not all, Chinese Law Enforcement Agencies have arrested 77 individuals who were found trading Tether – a stablecoin.

The use of Tether for gambling purposes was banned by the Chinese Government. Yet the agenda behind all this seems to be otherwise.

Many crypto investors believe that the events taking place in China are “designed” events. They said that China is indirectly trying to aid its digital Yuan to boost by giving it a plain field. The argument gets even stronger when news made headlines in Chinese newspapers.

The report told that The Peoples Bank of China (PBOC) has formulated a draft law.

It is said that the draft has been prepared to give legal cover to the Chinese digital Yuan. The law smacks of bias as it seems to be drafted in a way that it can potentially eliminate competitors.

However, the law has not yet been passed because it requires approval from the public in the comments form. The deadline for submitting comments is set as November 3, 2020. Once the comments are received favoring the law, then the law will be issued in the official gazette. The law will then come into force at once.

The law has named China’s digital Yuan as “Renminbi” and the shorter name is suggested as “RMB” in the law. The law describes that no one in China will provide for nor dispose of any digital tokens/coupons. Anything finds to the contrary will be regarded as replacing China’s official RMB, hence illegal and against the law.

Wolfie Zhao, who is a renowned journalist, told that in simple words the Chinese Government has issued a warning. This means that anyone who is found acting against the law will be taken to task by the Chinese Government. This may either result in the suspension of activities and seizure of sale proceeds. Additionally, the Government has the discretion to impose heavy fines along with imprisonment, told Zhao.

If the law is passed then it will also jeopardize the upcoming cryptocurrency called Libra, which was proposed by Facebook.